Break the Profit trap? Changan to buy "Golden Dragon"

Changan Automobile Group's expansion "campaign" continues.　　After the Peugeot Citroen group in the field of light commercial vehicles to reach a cooperative intention, Changan Automobile Group to the acquisition of the baton to the domestic, began with the Xiamen Jinlong Wagon Co., Ltd. (hereinafter referred to as the Golden Passenger car) to carry out the issue of equity acquisition negotiations. "At present, the two sides are still discussing a specific equity acquisition plan, and have not finalized the final outcome." A member of Changan Automobile Group, who declined to be named, told reporters.　　But the gold passenger car aspect still is silent to this question. For a long time, Changan Automobile group has been trapped by the problem of "more and less profit". "To the micro-oriented, sedan-oriented" product structure in the Changan Automobile group to bring sales figures, and not for it to provide greater profit margins.　　On the contrary, with the "car to the countryside", "purchase tax concessions, such as the weakening of policy impact, 1.6 liters and the following passenger car market sales began to decline, especially in the micro-vehicle market sales decline, which not only affect the Changan Auto Group sales profits, more directly affect its domestic market sales rankings. According to statistics of the China Industry Association, April, the domestic micro-car sales fell by about 20% per cent, Chongqing Changan affected by this month's car sales decline by nearly 50%, Changan Motor Group to 184,700 sales results again back to the "four major group" final.　　This figure, compared with its March car sales of about 80,000, when Changan Automobile group is also ranked "four big group" of the second seat. For Changan Automobile President Xu Liuping, the acquisition of Gold Brigade, together with PSA, and Volkswagen's Scania truck business cooperation, full access to the development of a better commercial vehicle market has been offing, because Changan to borrow commercial vehicle market to seek profits, sales of new breakthroughs, so as to achieve its "solid first three, strive for the top two"　　Long-term strategic goals.　　Awkward Golden Brigade for a long time, "a Tong three Dragons" occupy the domestic bus market about 70% of the market share, and the golden passenger car is "three Dragons" in a dragon. Golden Passenger car was founded in 1992, is an important member of the Golden Dragon Car system, with annual production of large passenger cars and medium-sized bus 15,000, light buses 25,000, large and medium-sized bus chassis 10,000 capacity, the product covers the conductor from 4.8 meters to 18 meters of the full range of passenger cars.　　At present, Xiamen Jinlong Automobile Group Co., Ltd. (hereinafter referred to as Jinlong Motor) holds its 60% stake, and the other 40% is held by the Hong Kong Ka Lung group. Jinlong Auto owns three golden Dragon bus companies, Xiamen Jinlong United Auto Industry Company (that is, the big Golden Dragon), Jinlong United Auto Industry (Suzhou) Co., Ltd. (that is, Suzhou Jinlong) and gold passenger car (also known as small Golden Dragon). Three gold dragon because of equity dispute, once parted ways, and then returned to the Golden Dragon car under its own.　　Now Jinlong is holding a large gold dragon and Suzhou Jinlong 51% and 60% of the equity. Before 2008, Golden Passenger car once in "three Dragons" occupy the first place, sales second only Yutong bus, especially light passenger products, in the "One through three Dragons" in the forefront. But 2008 years later, the international financial crisis, the Gold Brigade light passenger export business damaged, coupled with a few overseas bad debts did not recover, resulting in tens of millions of yuan loss, the impact on the development of enterprises. and golden Passenger car shareholders Hong Kong Ka Lung Group in 2008 but increased the investment in its Shannon bus.　　Shannon passenger car was established in Shanghai in 2004, mainly relying on the production platform and Technology of the Golden Brigade, both customers and products have formed a potential competition situation with gold passenger cars. According to the passenger car industry, the rapid development of the 2008 Shannon Bus business, the gold passenger cars hit not small. "The development of the Shannon bus diverted the customer resources of the golden passenger car, so that the large and medium-sized passenger car sales of gold passenger cars declined." At the same time, the old opponent of the Golden Dragon increased the investment in light passenger products, hatchback suffering, so that the golden passenger car two years of the day is quite bad. According to the 2009 Annual report of Jinlong automobile, the net profit income of the Golden Dragon and Suzhou Jinlong is over billion, while the net profit income of the golden passenger car is only 25.53 million yuan, down 14.62% year-on-year.　　According to statistics of China Automobile Industry Association, this January-April, the Golden Brigade sold 6,176 passenger cars, in the "One through three Dragons" ranked fourth. "At present, the Golden Brigade in the three dragons in the development momentum is slow, not only the shareholders on the Gold Brigade investment is not small, even the local government of Xiamen to the Gold Brigade support strength is not as big Golden Dragon." Now the Golden Brigade is in an awkward position.　　"An unnamed passenger car industry person told reporters. The embarrassing situation of the extended an Jin brigade provides an opportunity for Changan to be in office. "If Changan buys the Gold Brigade success, not only provides the opportunity for Changan to enter the bus market massively, but also favors the South market layout of Changan."　　"Changan Auto Group insiders told reporters. At present, Changan Automobile Group's Hebei Changan Victory Bus (hereinafter referred to as Changan Bus), located in Dingzhou, Changan Automobile Group is an important commitment to the expansion strategy, the main products mainly to medium-sized buses.　　But for a long time, Chang ' an bus market performance is not satisfactory, the market sales ranking is not in the top ten list. The current domestic passenger car market is encouraging, according to the latest data of China Automobile Industry Association, January-April this year, domestic passenger cars (including nonholonomic vehicles) sales of 135,400 vehicles, an increase of 40%.　　Among them, the light passenger car sales growth of the biggest contribution, sales of about 90,700 vehicles, an increase of 33.53%. Industry personage analysis, along with "Village pass" road construction and the related good policy unceasing implementation, our country rural passenger transport market continues to be hot, this becomes the main reason which the light bus continues to grow.　　The light passenger car is the superiority product of the Golden passenger vehicle, this means if Changan enters the gold passenger car success, then Changan Automobile Group will have a breakthrough in the sales profit and the product structure aspect. According to Changan Automobile Group, if Changan and gold passenger car cooperation, then the Golden Passenger car manufacturing technology will be input Changan bus, improve the latter's product quality, at the same time, both will be in the north-south echoes of the trend, become Changan Automobile group into the bus market, two major productionBase。 From the strategic layout, the acquisition of gold passenger cars will strengthen Changan Automobile group in the southern market strength.　　Changan PSA production base is very likely to settle in Shenzhen, gold passenger car production base in Xiamen, plus Changan Mazda production base in Nanjing, so Changan Automobile group completed the Pearl River Delta region's strategic layout, and Guangzhou, BYD automobile formation confrontation.　　Can Changan help the Gold brigade? Can the wishful thinking of Changan Auto Group benefit the Golden Passenger car and get rid of the present embarrassing situation?　　The bus industry is not optimistic about the prospects for cooperation between the two sides. "Do the bus to have a certain customer resources, and Changan in this aspect is obviously inferior to the gold Brigade." The Gold Brigade has the Customer Foundation also has the technology, if the shareholder aspect gives the more nimble business policy, and completes the internal manpower movement, the business reappears the vitality not to be difficult. "In the opinion of the industry, the problem of the golden passenger car lies in the unreasonable ownership structure." Although the Hong Kong Ka Lung Group only owns 40% of the gold passenger car ownership, but the current golden passenger car business development is mainly under the command of it, and its large shareholder Jinlong car is the main focus on the big Golden Dragon and Suzhou Jinlong.　　Now the Hong Kong Ka Lung Group operates Shannon Bus, Golden Passenger car two bus enterprises, the business relationship is difficult to balance the development of the golden Passenger car. "If the gold passenger car can straighten out the equity relationship, the remaining problems will be solved." But if Changan buys 60% of its stake in Jinlong's car, it will only complicate the stakes for the gold passenger car. At the same time will affect the market capitalisation of the listed company Jinlong car, in this sense, Changan acquisition of gold passenger car road will not be flat. The industry insiders told reporters.